Nigerian Ports Authority Sets Up Committee To Review Port Lease Agreements

The Nigerian Ports Authority (NPA) has set up a committee to review the entire port concession exercise to determine the renewal of contract-worthy concessionaires.

There are 26 private terminal concessionaires currently operating across the country out of which five are due for renewal of the concession license.

The affected concessionaires, are Ports & Cargo Terminal Ltd, operators of Terminal ‘C’ at the Tin-Can Island Port, Tin-Can Island Container Terminal, TCIP; ENL Consortium, Terminal C, Lagos Port Complex, LPC; ENL Consortium, Terminal D, LPC Josephdam Terminal and AMS Terminal, Delta Port.

Acting Managing Director of the NPA, Mohammed Bello-Koko, said the management has constituted a Committee to review the lease agreements in line with operational realities.

Bello-Koko was, however, silent on the fate of the remaining 21 concessionaires with regards to the renewal of their licenses.

“Management constituted a committee to review the lease agreements in line with operational realities to achieve the objectives of the port reforms.

“The Authority has secured approval for the renewal of expiring leases for the following five terminal operators and the process has commenced: 1. Ports & Cargo Terminal Ltd, TCIP 2. ENL Consortium, Terminal C,LPC 3. ENL Consortium, Terminal D,LPC 4. Josephdam Terminal,TCIP 5. AMS Terminal, Delta Port.

“To address the issue of skewed concession agreements, we have undertaken a review of the Lekki Deep Sea Port Concession Agreement, and have been able to secure an upward review of not just the commencement fee, but also for the royalty payable to the Authority.

‘‘The federal Executive Council, FEC, approval has been secured for the amendment. Parties have reached financial closure, which has enabled the commencement of the Concession Agreement.

“With this, the actual construction work has witnessed appreciable progress.”  He stated.